|
|
|
|
     |
|
|
|
|
New Amendment to Oregon Unlawful Trade Practices Act Poses Risks for Lenders Like most states, Oregon has an Unlawful Trade Practices Act (UTPA) which prohibits unfair and deceptive trade practices aimed at consumers. In Oregon, however, the courts have held for decades that Oregon’s UTPA does not apply to loans and extensions of credit. Banks and other lenders did not have to worry about the liability for actual damages, punitive damages, and attorney fees that comes with a jury verdict under the UTPA. Now all that has changed. The Oregon legislature, in its February 2010 special session, passed a bill (HB 3706) that amends the UTPA so that it expressly does apply to loans and extensions of credit. The Governor is expected to sign the bill soon, and it will be effective as soon as he does. This is a significant change for banks and other lenders. The addition of a UTPA claim to a complaint in a lawsuit can shift the balance of risks, because of the threat of an award of attorney fees. As a result of this new legislation, lenders can expect to face an increase in consumer litigation in Oregon. March 2, 2010
|
|
|
|
|
||||||||||||
|
|
|
|
||||||||||||
|
|
|
|
